NOTE 7. – NOTES AND LOANS PAYABLE

The table below outlines our notes and loans payable balances as of June 30, 2026 and December 31, 2025:

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Insurance loans payable

During the second quarter of 2026, the Company renewed its Director and Officer (“D&O”), property and general liability insurances for a one-year policy premium totaling $802. The Company paid $161 as a premium down payment and financed the remaining $641 of policy premiums over nine months at a 6.05% annual percentage rate.

During the second quarter of 2025, the Company renewed its Director and Officer (“D&O”), property and general liability insurances for a one-year policy premium totaling $1,023. The Company paid $205 as a premium down payment and financed the remaining $818 of policy premiums over nine months at a 6.6% annual percentage rate.

NCSU Promissory Note

On October 31, 2025, the Company entered into a note payable with NCSU in the amount of $632 at 7% simple fee interest rate payable in equal installments over 60 months. The note payable was issued as settlement for all remaining outstanding obligations owed to NCSU related to license fees, annual royalties, and intellectual property and patent maintenance.

Estimated future principal payments to be made under the above notes and loans payable as of June 30, 2026 are as follows:

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